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Case presentation - Strong Market Orientation (SIUFMULCO)

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A short presentation on how the San Isidro Upland Farmers Multi-Purpose Cooperative penetrated the market through abaca fiber production.

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Page 1: Case presentation - Strong Market Orientation (SIUFMULCO)

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Page 2: Case presentation - Strong Market Orientation (SIUFMULCO)

Profile

Name : San Isidro Upland Farmers Multi-Purpose Cooperative (SIUFMULCO)

Registration: CDA Reg. No. CARA-0395 - January 1998 DOLE Reg. No. 10-520-91 - August 1991

Address : Purok 1, Brgy. San Isidro, Santiago, Agusan del Norte, Caraga Region

Contact E-mail : [email protected] Mobile: +63 919 536 8664

Total coop members: 95 (40 Males and 55 Females)

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Page 3: Case presentation - Strong Market Orientation (SIUFMULCO)

Brief History• Organized in 1989 through the

Integrated Social Forestry Program of Department of Environment and Natural Resources (DENR)

• First registered in Department of Labor and Employment (DOLE) in August 1991 as San Isidro Upland Farmers Organization (SIUFO)

• In 1998, the organization was transformed into a cooperative named SIUFMULCO with an initial Capital Build-Up of P3,200.00 of 23 members only.

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Page 4: Case presentation - Strong Market Orientation (SIUFMULCO)

Vision

A model cooperative with compliant, faithful and devoted members headed by officers with unquestionable integrity. A self-sufficient organization providing unparalleled service and commitment to the community

MissionMembers with incessant and active involvement in every cooperative activities. Maintain self-discipline, coupled with love, hard work, service oriented and trustworthy officers. Insatiable quest for novel for the betterment of the cooperative.

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Page 5: Case presentation - Strong Market Orientation (SIUFMULCO)

Projects Implemented

115 has. Agro-Forestry Project (CBRMP) 12 has. Micro-Watershed (CBRMP) 0.5 has. Ampalaya Production (CBRMP) Native Chicken Production (CBRMP)

Green Corn Production (DAR/IFAD-NMCIREMP)

Abaca Fiber Production and Trading (DOLE)

Profile

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Page 6: Case presentation - Strong Market Orientation (SIUFMULCO)

Partnership with PACAP

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Lake Mainit Development Alliance

In March 2007, SIUFMULCO implemented a PACAP assisted project entitled “ Enhancing and Protecting an Agroforestry Area Thru Abaca Fiber Production”

Page 7: Case presentation - Strong Market Orientation (SIUFMULCO)

PACAP Assistance

Abaca Farm Establishment

Grant Funds = Php 1,600,000.00

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Page 8: Case presentation - Strong Market Orientation (SIUFMULCO)

PACAP Assistance

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One of the 60-hectare abaca plantation

Page 9: Case presentation - Strong Market Orientation (SIUFMULCO)

PACAP Assistance

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Enterprise Development

Grant Funds- PhP822,000.00

Before

Now

Page 10: Case presentation - Strong Market Orientation (SIUFMULCO)

PACAP Assistance

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Page 11: Case presentation - Strong Market Orientation (SIUFMULCO)

PACAP Assistance

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Administrative and Project Management

Grant Funds = PhP364,000.00

Page 12: Case presentation - Strong Market Orientation (SIUFMULCO)

PACAP Assistance

• Capability Building, Institutional Development

• Grant Funds-Php304,000.00

• IEC

• Grant Funds-PhP10,000.00

• Monitoring and Evaluation

• Grant Funds-Php100,000.00

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Page 13: Case presentation - Strong Market Orientation (SIUFMULCO)

Abaca Fiber Production and Trading

Our Enterprise

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Page 14: Case presentation - Strong Market Orientation (SIUFMULCO)

•Abaca Handicrafts Production

Our Enterprise

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Page 15: Case presentation - Strong Market Orientation (SIUFMULCO)

•Abaca Seedling Production & Marketing

Our Enterprise

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Page 16: Case presentation - Strong Market Orientation (SIUFMULCO)

Our EnterpriseConsumer Store

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Before Today

Page 17: Case presentation - Strong Market Orientation (SIUFMULCO)

SECRETARY TREASURER

A and I COMMITTEE

CREDIT COMMITTEE

ELECTION COMMITTEE

BOARD of DIRECTORS

GENERAL ASSEMBLY

EDUCATION COMMITTEE

MARKETING

COMMITTEE

AGRO-FORESTRY

/ M & E COMM.

AGRI-LIVESTOCK COMMITTEE

GEN. MANAGER

Management

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GEN. MANAGER

BOOKKEEPER

L E N D I N G

LOAN OFFICER

ABACA TRADING

PROJECT IN-CHARGE

CASHIER COLLECTOR

DRIVER

C O N S U M E R STORE

SALES CLERK

ABACA CLASSIFIER

Management

Page 19: Case presentation - Strong Market Orientation (SIUFMULCO)

Benefits

ECONOMIC

• Increased employment in the cooperative from 4 in 2005 to 11 in 2008.

• Farmers accessed high price of abaca in local market.

• Presence of vehicle improved business mobility.

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Page 20: Case presentation - Strong Market Orientation (SIUFMULCO)

Benefits

ECONOMIC

• Increased coop income from Php 94,490.16 in 2006 to Php 580,624.95 in 2008

• Establishment of 8 buying stations in other municipalities (e.g. Cabadbaran, RTR, Buenavista, Nasipit, etc).

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Page 21: Case presentation - Strong Market Orientation (SIUFMULCO)

SOCIAL

• Renovation of the consumer store building and office.

• Increased community awareness on the sustainable benefit of abaca than mining.

• Enhanced product quality thru trainings provided.

Benefits

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Page 22: Case presentation - Strong Market Orientation (SIUFMULCO)

SOCIAL

• Gained trust and developed strong partnership with line agencies (e.g. DTI, FIDA, DENR)

• Developed community/ coop members’ trust.

• Staff acquired knowledge in computer operation.

Benefits

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Page 23: Case presentation - Strong Market Orientation (SIUFMULCO)

Benefits

ENVIRONMENT

• Individual farms developed into abaca plantation.

• Minimized community influx to forest area for timber poaching.

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Page 24: Case presentation - Strong Market Orientation (SIUFMULCO)

Benefits

ENVIRONMENT

• Improved forest cover.

• Community adoption to multiple land management system.

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Page 25: Case presentation - Strong Market Orientation (SIUFMULCO)

Table 2. SIUFMULCO Abaca Fiber Trading and Production Enterprise Income Statement for the Period January to September 2008

Amount% of

Sales

Gross Sales  4,480,333.15 100.0%

Less: Cost of Goods Sold 3,705,471.55 82.7%

Gross Income from Sales 774,861.60 17.3%

Add: Other income 3,122.50 0.1%

Gross Profit 777,984.10 17.4%

Total Operating Expenses 96,421.12 2.2%

Net Income from operations 681,562.98 15.2%

Coop Financial Situation

Page 26: Case presentation - Strong Market Orientation (SIUFMULCO)

Lessons learned

• Responsible Leadership. • Market linkage and

partnership with bigger Grading and Bailing Establishments inside the Region, in Davao, Cebu and Leyte.

• Provision of incentives to regular coop clients (e.g. patronage refund to non coop members)

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Page 27: Case presentation - Strong Market Orientation (SIUFMULCO)

Lessons learned

• Transparency and honesty (e.g. financial reporting every other month)

• Continuous research and innovation (e.g. market, product, management systems)

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Page 28: Case presentation - Strong Market Orientation (SIUFMULCO)

Marketing Challenges and Opportunities

CHALLENGES

• Global financial crisis. • Fluctuating market price

on abaca.• Market competition. • Product quality.• Attain Grading & Bailing

Establishment (GBE) level supplier

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Page 29: Case presentation - Strong Market Orientation (SIUFMULCO)

Marketing Challenges and Opportunities

OPPORTUNITIES

• Market demand is very high on abaca fiber.

• Close relationship with GBE (e.g. Ching Be Trading-Davao)

• Presence of transportation vehicle

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